Last week, the three major indexes all posted gains for the week. The Dow was up 3 percent, the S&P 500 was up 3.1 percent, and the Nasdaq was up 2.8 percent.

The Federal Reserve raised its discount rate late last week, leaving investors to wonder whether the Fed was merely indicating confidence in the financial sector’s renewed strength or whether it might be signaling that other economic stimulus aids could be curtailed or that signs of inflation could be appearing.

Fourth-quarter earnings reports for department store chains will be of interest next week. Investors hope to see consumer demand turn upward and company outlooks to indicate that customers are ready to spend at stores other than discounters. Suppliers of building materials will also be reporting, and will be providing a glimpse at housing market needs.

Economic reports during the coming week will give investors further data on the housing market. On Wednesday, new home sales figures will be released and are expected to show a rise over the previous month. Friday will bring existing homes sales figures, and the home price index will be released on Thursday. Although home prices continue to fall, the rate of decline is slowing. Still, foreclosures for the fourth quarter of 2009 show a record high, and repossessed properties currently held by lending institutions have not yet reached the already depressed market.

On Wednesday and Thursday, Federal Reserve Chairman Ben Bernanke will testify before Congress on the state of the economy. Although his purpose is to clarify monetary policy, it is expected that he will face inquiries about the Fed’s intent to formulate an exit strategy for the federal stimulus funding.

Wednesday will also be the day that the SEC is expected to vote on proposed restrictions to govern short-selling in the stock markets.

Investor attention in international matters will still be focused on Greece’s enormous budget deficit and its impact on the euro and on efforts by the European Union to provide a plan to maintain the stability of the euro.

5 Stocks to Watch

Five Big Caps are still poised for strong gains with market and sector strength and confirmation. The five stocks we're watching:

CBS Corporation (CBS)
Comerica Incorporated (CMA)
PPG Industries, Inc. (PPG)
SYSCO Corporation (SYY)
Tyco Electronics Ltd. (TEL)

Dave Mecklenburg is the Editor-in-Chief of TigerSharkTrading.com.